A Better Way to Market Sustainable Products: Key Insights from NYU Stern and PwC Research

Sustainable products continue to gain traction among consumers, but effectively marketing them presents unique challenges. Research by NYU Stern’s Center for Sustainable Business (CSB) and PwC offers actionable strategies to help companies realize the full value of sustainability in consumer packaged goods (CPG).

Growing Consumer Demand and Market Share for Sustainable Products

• Sales Growth: Sustainability-marketed products reported a 12.3% annual sales growth from 2019 to 2024 in 36 consumer goods categories covering about 40% of the CPG market (excluding alcohol and tobacco). This growth rate is 2.3 times faster than for conventional products.
• Market Share: By 2024, sustainability-marketed items achieved a 23.8% share of overall sales.
• Price Premiums: Consumers are willing to pay an average premium of 9.7% for sustainable products, supported by empirical data showing an actual average premium of 26.6%. Some categories, like paper goods, command over 100% premium, while coffee, cereal, and chocolate see around 50% premiums.

Essential Strategies for Marketing Sustainable Products

1. Clarify the Business Case

• Identify and understand target customer segments most likely to buy sustainable products—millennials, higher-income earners, college-educated consumers, and urban dwellers lead in purchases.
• Acknowledge category differences. For example, dairy products show strong sustainable product sales across all demographics.

2. Amplify Product Appeal by Combining Core Attributes with Sustainability

• Successful marketing blends product core attributes with sustainability messages. For example, a chocolate bar emphasizing rich taste alongside environmental benefits resonates more deeply.
• Research by CSB and Edelman shows that combining one core product benefit with one or two sustainability claims increases consumer appeal by approximately 30 percentage points.
• Tailor sustainability messages to those relevant to the product category—e.g., skin-friendly sustainable ingredients for skincare products.

3. Prioritize Credible, Consumer-Relevant Claims

• Consumers respond best to sustainability claims that communicate clear consumer benefits such as:
  • Protecting human health (free of harmful ingredients)
  • Saving money
  • Supporting local farms and food systems
  • Preserving animal health
  • Supporting children and future generations
  • Sourcing from local or sustainable origins
• Less effective claims include scientific attributes (e.g., biodegradable, climate-neutral), traceability details, packaging claims (except all-recycled content), and generic sustainability certifications.
• Certifications support credibility but should be supplemented with compelling consumer-focused messaging.

4. Ensure Precision and Evidence-Based Claims Amid Regulatory Scrutiny

• Avoid ambiguous terms like “clean,” “natural,” or “safe,” which are prone to legal challenges.
• Monitor evolving regulations such as the EU’s Corporate Sustainability Reporting Directive, Corporate Sustainability Due Diligence Directive, and the proposed Green Claims Directive, requiring substantiated environmental claims.
• Build strong capabilities in value chain analysis and product traceability to provide transparent, verifiable sustainability claims.

Conclusion

Shoppers increasingly favor sustainable products, but for brands to fully capitalize on this market growth, marketing must be strategic: frontloading sustainability credentials that are credible, relevant, and seamlessly blended with core product benefits. By doing so, companies not only meet consumer demand but also justify premium pricing and secure long-term competitive advantage.

About the Authors:
Tensie Whelan is Distinguished Professor of Practice and Founding Director of NYU Stern’s Center for Sustainable Business. David Linich is a PwC US principal specializing in decarbonization and sustainable operations.

Source: “A better way to market sustainable products,” May 21, 2025, Strategy+Business, NYU Stern Center for Sustainable Business and PwC.

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